Sn = (a1) x (1 - r^n) / (1 - r)
Substituting the known values:
S5 = (6) x (1 - (1/3)^5) / (1 - 1/3) = 242/27 = 8 24/27 = 8 8/9
0.22% shrinkage as a percent of sales.
To calculate shrinkage you subtract the physical inventory value from the book value.
245,000-237,000 = 800
The shrinkage was $800. To find the shrinkage as a percent of sales take the shrinkage value and divide it by the sales value to get shrinkage as a percentage of sales.
800 / 360,000 = 0.0022....
Multiply Decimal by 100 to get the percentage
100 * 0.0022.... = 0.22%
O it is not correct he can find the correct sum by counting and adding 8,9,10 so the answer is ten he was one of his answer he must not of counted right
